FTX Payments Update: What You Need to Know

Payments do not have a single universal start date. The Bankruptcy Court of Delaware has set January 3, 2025, as the effective date, when the proposed bankruptcy plan will be effective and enter into execution. After this date, there is a 60-day window for payment distributions to begin.

It's essential to approach this as a marathon rather than a sprint. If all your claim checkboxes are green and you are eligible for a distribution platform like Kraken or BitGo, you are likely to be paid within this 60-day window. However, unresolved claims or disputes could result in delays.

The FTX bankruptcy process is divided into three main chapters: United States Chapter, Bahamas Chapter, and European Chapter. Each chapter has distinct processes, timelines, and platforms for submitting claims and receiving payments.

In early 2023, FTX's European entity exited the bankruptcy chapter, managing its recovery process independently. Customers must use FTXEurope.eu for claims. The recovery rate for European customers is capped at 100%. As of now, no estimated payment date has been provided for European customers. Also, EU is waiting an approval from CySec, the Cyprus Securities and Exchange Commission, to enable the FTX EU entity the autorization to process payments.

The Bahamas process operates as a sub-process within the international chapter. In early 2024, the Bahamas spun off into a separate procedure managed by PwC. Bahamas customers must use PwC-Bahamas with distinct submission processes and timelines. Payments for Bahamas customers will likely occur later than those for U.S. customers, given that the processing of customer information started much later than the U.S one. They cannot log into the U.S. portal and will not receive payments in the current round.

Also the payment methods (e.g. via distributor agents like Kraken or BitGo) are not yet confirmed and can be substantially different.

Bahamas customers are divided into two classes: Convenience Class and Non-Convenience Class. Same as per the US process. The recovery rate for Bahamas customers is in line with the US process (therefore receiving the interests accrued in the meantime).

Claims under $50,000 or voluntarily reduced to $50,000. Customers receive up to 118% (100% of the claim + 18% accrued interest). Payments begin within 60 days of January 3, 2025.

Claims of $50,000 or more. Expected recovery rate of 140% but distributed over multiple installments. The first payment is likely in June 2025, covering 65%-70% of the total claim, with the remainder distributed over subsequent months and years.

The Recovery Rate for Non Convenience Class is an estimate and may vary even significantly based on the final distribution given to the Convenience Class. Therefore, we expect Kroll to update the the final recovery rate for Non Convenience Class after the first payment to Convenience Class.

Understanding the status of your claim is crucial, as it determines whether you are close to being paid or may face delays. Here are the key points:

Note: To check your claim status, log into the portal claims.ftx.com and check at point 5) the upper right indicator (do not relay on the left column status sign as in some cases it may be out of sync with the indicator inside the point 5).

If all your checkboxes on claims.ftx.com are green, your claim has been accepted, and you're close to being paid.

Important Note: Checkbox #6 (voting) does not affect your claim's validity. Even if it's not green, you remain eligible for payment.

If your Step 5 (requested amount) shows a blue arrow 🔄, this indicates that your claim has been submitted but is under additional review and not yet accepted. Here's what it means and what you can do:

🟡 The claim may include discrepancies, such as amounts that don't match the records, submitting claims for amounts not owed, or misunderstanding eligibility criteria based on your account type. Additionally, supporting documentation might be missing or incomplete—for example, records for pending withdrawals of fiat or crypto that were not processed due to FTX's lack of funds but still deducted from your account balance. All of these issues can result in delays and require careful attention to resolve.

• 👉 Log into claims.ftx.com and verify that all required documentation has been submitted accurately.
• 👉 Check your email for any notifications or requests for additional information from the claims team.
• 👉 Be patient, as the review process for disputed claims is conducted on a rolling basis.

• Your claim may be approved after review and moved to an accepted status.
• If further issues are found, you may receive specific instructions on correcting your submission.

If you are unsure why your claim remains in this status, reach out to us for professional assistance. We can provide a detailed review, explain the implications, and guide you on the next steps to ensure your claim is resolved efficiently.

Ensure your KYC is completed and marked green. Failure to resolve KYC by March 2025 may result in losing your claim rights. 🔴

🟡 If Step 5 (requested amount) is not green, your claim is under additional review. This status, while common, means you may experience delays beyond the 60-day payment window for fully accepted claims. It is very important to check if your claim has any objections. Objections indicate specific issues that require resolution before the claim can be processed. If your claim is objected, you need to understand the implications and take appropriate action to address them. Reach out to us for professional advisory and assistance in navigating objections. We can help you clarify the root cause, outline the necessary steps, and resolve them effectively to ensure your claim progresses smoothly.

Ensure you apply through the correct entity associated with your unique claim code. Example: European customers should not submit claims through the international customer process.

If you submitted multiple claims for the same account, these require judicial review. Customer support cannot resolve these issues.

🔴 If you missed the September 2024 submission deadline, your claim is marked as "Not Started." Contact us immedaitely for potential recovery options.

As of today, there is no deadline to choose the distributor agent, and while Kraken and BitGo are available, more agents will be available in the coming days and months. If Kraken and BitGo are not available in your country, or are not onboarding customers of your nationality, or are not providing you with the desired withdrawal option (for example, fiat withdrawals into a local bank), simply wait. The January 3rd date is not the deadline for appointing the distributor agent and more will be presented.

If they timelines above are not matching your liqudiity needs, we offer immediate liquidity options for your FTX claim. Here are the benefits of selling your claim to us:

• 🟢 High payout rates.
• 🟢 Payments in multiple cryptocurrencies.
• 🟢 24/7 assistance.

Contact us for tailored support to meet your immediate liquidity needs.

The FTX compensation process is highly intricate, requiring patience and attention to detail. Whether you are close to receiving payment or facing unresolved issues, ensure that all your submissions are accurate and complete. For tailored advice or immediate solutions, our team is here to help. Stay informed and patient—resolution is within reach.